Monday, 9 August 2010

Govt holds the monopoly to PSA-Sical from the bunk Tuticorin bid

Maritime News
August 9, 2010 23:24
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Govt holds the monopoly to PSA-Sical from the bunk Tuticorin bid

The Government of India on Tuesday issued a directive to restrict private sector monopoly in ports. Due to this policy, PSA-Sical will not be able to participate in the bid for the ‘8 +t +h berth’ at the Tuticorin port

BOT basis

The Rs 312-crore project is for the conversion of the existing berth
into a container terminal on ‘build, own, transfer’ (BOT) basis.

“According to the Government policy, if there is only one private
terminal/berth operator in a port for a specific cargo, the operator of
that berth, or his associates, shall not be allowed to bid for the next
terminal/berth for handling the same cargo in the same port,” the
Tuticorin Port Trust (TPT) said in the request for qualification (RFQ).

“PSA-Sical cannot even buy the RFQ document for the project. We got the
order on Tuesday and have issued the RFQ today for the 8th berth,”
according to the TPT Chairman, Mr G.J. Rao.

8th terminal

Leading companies such as Larsen & Toubro, Afcons and DP World, have
shown interest in the project, he told Business Line. It has been
nearly six years since the Government first gave its in-principle
approval for conversion of the 8 +t +h berth project at Tuticorin.
The Shipping Ministry gave its approval in March 2009, but the project
was delayed due to various court proceedings.

handling Forecast

According to the business plan of the Tuticorin port, the container
traffic forecast for the year 2014-15 will be 1.47 million TEUs (20-foot
equivalent units).

This is against the present capacity of 0.41 million TEUs in the present
container terminal at 7 +t +h berth operated by PSA-Sical, a joint
venture between the Port of Singapore Authority and the Chennai-based
Sical Logistics.

The change in policy comes at a time when the Government plans to
increase the cargo-handling capacity at major ports to nearly 1,000
million tonnes in the next two of years from 600 million tonnes.

Capacity expansion

This additional capacity will require an investment of over Rs 55,000
crore, of which, 75 per cent is expected to come from the private
sector.

Investment

Nearly Rs 8,000 crore worth of investment is expected in building
container terminal facilities in Chennai, JNPT and Ennore ports,
according to an industry source.

Source: The Hindu Business Line

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